Compromise in works for central Illinois coal-gasification plant

Thursday

A carbon compromise may be near in the Illinois General Assembly that supporters say would pave the way for greater use of the state’s coal resources, while protecting consumers and the environment.

A carbon compromise may be near in the Illinois General Assembly that supporters say would pave the way for greater use of the state’s coal resources, while protecting consumers and the environment.

The legislation, which could come up for a vote Friday, also would allow engineering to begin for a $2.5 billion coal-gasification plant near Taylorville by committing developers to reduction of carbon emissions linked to global warming.

A bill working its way through the final scheduled hours of the General Assembly — the adjournment deadline is midnight Saturday — proposes that at least 25 percent of power sold in Illinois come from clean-coal plants by 2025.

“Without this first step, we would not be able to go forward with the Taylorville project. It looks like everyone is now at the table,” said Bill Braudt Jr., general manager of business development for Tenaska Inc.

Braudt said Thursday that supporters are optimistic legislation could be approved by Saturday’s adjournment deadline. The Nebraska-based energy company has a major stake in the Taylorville Energy Center, which also has promised to create hundreds of permanent and construction jobs.

A key element of the compromise is Tenaska’s commitment to “capture” at least 50 percent of carbon-dioxide emissions resulting from conversion of Illinois coal to synthetic gas for electricity production.

Specific technology — including injecting CO2 deep into the earth, a process known as “carbon sequestration” — would be determined by the design study and could be used for other clean-coal projects.

Groups ranging from the Sierra Club to the Illinois attorney general’s office have lobbied for the carbon-emission limits, which were not part of the original project plans.

“The AG believes it’s important for Illinois to prepare its utilities to reduce carbon emissions for the state, and to do that while encouraging economic development and use of Illinois’ abundant coal resources,” said Robyn Ziegler, a spokeswoman for Attorney General Lisa Madigan.

Ben Weinberg, who has been working on the bill for the AG’s office, said it could come up for a vote today.

Madigan also insisted on a provision that would require completion of a design and cost study before developers could come back to the General Assembly for approval of a mandate that Ameren Corp. and Commonwealth Edison enter into long-term purchase contracts for power from the Taylorville Energy Center.

The concern is that consumers could wind up footing the bill if construction costs are higher than expected.

Similar concerns about cost overruns helped stall the FutureGen coal-gasification plant near Mattoon, about 85 miles southeast of Springfield. The original cost estimate of $950 million had risen to $1.8 billion by the time the U.S. Department of Energy pulled its support early this year.

Illinois Coal Association president Phil Gonet said a breakthrough on carbon emissions in Illinois would boost clean-coal plants planned nationwide, even though there are no specific federal or state standards for CO2 emissions.

“What we like about it, of course, is that it requires the use of Illinois coal. It’s progress, but it’s still just a start,” Gonet said.

Executive director Howard Lerner of the Environmental Law Policy Center said he is encouraged developers have accepted a need for limits on carbon emissions, but the “devils are always in the details.”

“I don’t think there’s any possibility this bill was going anywhere without carbon capture. The percentage is one of those figures that makes the difference. If it’s 10 percent, we probably won’t support it. If it’s 90 percent, we probably will,” Lerner said.

Braudt said the design study would begin immediately and would take about a year if the legislation were approved, adding that power production now would begin in 2013 at the earliest.

Staff writer Adriana Colindres contributed to this report. Tim Landis can be reached at (217) 788-1536 or tim.landis@sj-r.com.

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